The margin lost from current as well as future sales if the customer does not return should be included in
A)the cost of overstocking the product.
B)the cost of stocking the product.
C)the cost of understocking the product.
D)the cost of overselling the product.

Question

Quizplus · Accepted Answer

The margin lost from current as well as future sales if the customer does not return is considered in the cost of understocking the product. This is because understocking leads to missed sales opportunities, potentially driving customers to competitors and resulting in lost future sales.

The Margin Lost from Current as Well as Future Sales